Avoid Real Estate Scams
Even the most experienced real estate investor can become prey to a real estate scam. Before you put your signature on any part of a purchase contract consider the steps you can take to protect your investment from an unscrupulous source. Check out the licensing status of anyone that is working on the deal. Your real estate agent, lending institution and appraisal agent should all have licenses that are reputable and in accordance with the relevant laws. Speak with authorities if there is something in those records that you consider to be suspect.
Examine the public records of both the property in question and ones in the immediate area so you can ascertain its appraised value and at the same time find out if there are any outstanding liens. If you subsequently think that the price you have agreed to is abnormally high or low, talk to a solicitor about getting out of the deal. Get your own lender and house inspecting service if you are looking at buying the property. Any contacts that your estate agent suggests are no doubt qualified but can be known to overlook important details in the hopes of ensuring referrals in the future. Working alongside your own team will assure that it is your best interests that will be prioritised.
Make sure everything is in writing from start to finish. If your buyer /seller ask for a verbal contract this could be a sign that they are somehow trying to fleece you. Be familiar with all documents you are signing. Real estate contracts are absolutely stuffed with fine print and it pays to take extra time to look over everything and make sure that your additions or amendments are included. Ask a solicitor to attend the closing with you if you need some extra help.
Just don’t go with deals that seem too good to be true. Longstanding vacant homes, undeveloped land, and properties that have been foreclosed upon are all signs that something doesn’t bode well. Tread extremely carefully if you decide to go ahead.
Avoid handing over cash before you receive any goods or services in return, particularly with mortgage brokers promising exorbitant returns.